[Beijing = E-Daily Lee Myeongcheol Correspondent] HyundaiMotor(005380) Li Fenggang, who became the first Chinese general manager at Beijing Hyundai—a joint venture in China—is reportedly stepping down from his position less than a year after taking office. Some analysts in China attribute this to conflicts between South Korean and Chinese shareholders.

Chinese business media outlet Di Chaijing reported that General Manager Li Fenggang is scheduled to officially step down on the 1st of next month. This comes approximately one year after Mr. Li took office on November 10 of last year.

Diichaiying pointed out that while both South Korea and China hold a 50% stake in Beijing HyundaiMotor, the localization reform has been delayed due to a failure to reach agreement on key issues such as management goals and the extent of cost reductions.

General Manager Li was unexpectedly appointed to lead Beijing Hyundai to advance HyundaiMotor’s localization strategy in China. Born in 1982, General Manager Li graduated from Tsinghua University’s Department of Mechanical Design and Automotive Engineering and built his career at FAW-Volkswagen. At the time of his appointment, HyundaiMotor described General Manager Li as “a young, versatile local talent who began his career in research and development (R&D) and has since gained experience spanning strategic planning, sales operations, and brand building.”

Di Yicai also pointed out that HyundaiMotor’s goal in recruiting General Manager Li was to address localization reform issues. Last October, HyundaiMotor announced a goal to launch 20 new models over the next four to five years and achieve annual sales of 500,000 units within five years.

Although HyundaiMotor sold over 1 million vehicles annually in China alone, its performance has fluctuated due to the rapid shift toward electric vehicles in the local market and the growth of domestic Chinese brands. Last year’s sales totaled approximately 210,000 units.

An internal source at Beijing Hyundai told the media, “General Manager Lee’s departure is not merely a personnel change; behind it lie disagreements between South Korean and Chinese shareholders regarding the company’s future direction.”

The source further claimed, “Efforts to recruit Chinese personnel into the management team dispatched by the South Korean side have consistently shown only limited progress, and key positions have continued to be held primarily by South Koreans.”

Meanwhile, HyundaiMotor is pursuing its localization strategy in China through Beijing Hyundai. In the first half of this year, Beijing Hyundai’s cumulative sales totaled 94,697 units, a 5.3% decrease compared to the same period last year, and the company is working to turn this trend around.

Last month, the company entered the local electric vehicle market with the launch of the Ioniq V, an electric vehicle designed exclusively for the Chinese market. According to local media, the Ioniq V was initially offered at a remarkably low price of 99,000 yuan (approximately 19.85 million won). However, specific details regarding its sales performance since launch have not yet been disclosed.